0.03 gamma x 10 days = 0.30
So you thought you were buying March ATM Call options for only $0.10, but they ended being Deep OTM? $0.10 should indicate that they are Deep OTM...
With one day left to expiry the market has put a time value of $0.20 on the position
+1
I would think that if you shorted all options you would come out ahead. They are a decaying asset so how would you not make money?
Then don't be so anal-retentive. :)
LOL You are the only one on ET that thinks this is a real trade, it's obvious that stevebearman started this thread as a joke. He sure sucked you...
Usually Debt Spreads 1 - 2 strikes apart to reduce the cost.
Maybe stevebearman sold the puts to make up for his AAPL trade. Should I panic about my short position on Apple calls?
? :confused:
That is correct ...... Perhaps Nine_Ender could respond to the post in question. :cool:
You are quoting my post out of context. :)
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A higher share price also thwarts off Hostile Takeovers.
$470
The OP should be panicking by now.
The OP hasn't posted the premium he collected, maybe he has a small unrealized profit at this time.
Yes ....... Maybe enter the position 4 / 5 weeks before expiry.
My guess is that it will take longer than 1 month for the December option to decay by $0.30 plus Bid/Ask spread and commissions. Could even take a...
I don't think deeper expiration is a good solution, most of the time decay is in the last month. For a premium seller more time is not your friend.
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